Pre-owned Bizjet Prices Stabilized in 2013, Says Amstat

After pre-owned business aircraft asking prices peaked in early 2008 and then plunged in 2009, the rate of decline slowed last year in most market segments, leveled off in others and even increased in one, according to market data released today by Amstat. Continuing recent trends, the lower end of the market suffered while the higher end fared better.

Last year, average asking prices for used light jets fell, with aircraft older than 20 years seeing the most dramatic change, experiencing an 11-percent drop in pricing. Though full-year data for 2013 is still incomplete, “Indications were that the resale retail transaction activity in this market would be up over 2012,” Amstat said. As of November, 3.5 percent of the active light jet fleet had been sold versus 2.4 percent in 2012.

Meanwhile, the midsize jet market was a “poor performer” last year, with average asking prices decreasing 16 percent for aircraft younger than 10 years and 9 percent in the more than 20-year-old segment. In contrast, asking prices in the 10- to 20-year-old midsize jet segment climbed 6 percent. Inventory of pre-owned midsize jets, however, rose 3 percent last year, according to Amstat.

Amstat said the “surprise trend” last year was the 16-percent increase in average asking prices among the older pre-owned large-cabin jets, while prices for younger (under 10 years old) jets fell by 5 percent. As with most other segments, the number of large-cabin jets on the market shrunk last year, down 11 percent, 5 percent and 16 percent in the less than 10-, 10–to-20- and more than 20-year segments, respectively. Resale retail transactions for this segment last year appeared to be “on par” with 2012, Amstat noted.